Lloyds Net Profit Hit Hard by PPI Provisions

British Bank Hit by Number of Legacy Charges

LONDON—Lloyds Banking Group PLC on Thursday said net profit fell sharply in the first half of the year as the U.K. bank was hit by a number of legacy charges including another sizable provision to cover wrongfully sold insurance products.

The British bank said net profit fell to £574 million ($970.8 million) from £1.56 billion a year earlier, as total income dropped to £14.3 billion from £22.07 billion. Underlying profit, which strips out one-off costs and provisions, rose 32% to £3.82 billion, which was better than...